Cuomo says NY will join Connecticut, New Jersey in lawsuit over federal tax bill
Collins says ‘King Cuomo’ wants to steal federal tax cuts for NY residents
Governor Andrew M. Cuomo today announced that New York, New Jersey and Connecticut have launched a coalition to sue the federal government to challenge the new GOP tax bill that eliminates full state and local tax deductibility.
This provision effectively preempts the states’ ability to govern by reducing the ability to provide for their own citizens and unfairly targets New York and similarly situated states in violation of the Constitution, Cuomo said in a news release.
“New Yorkers will not stand idly by as the federal government fires an economic missile at the fiscal health of our state,” Governor Cuomo said. “The elimination of full state and local deductibility is a blatantly partisan and unlawful attack on New York that uses our hardworking families and tax dollars as a piggy bank to pay for tax cuts for corporations and other states. This coalition will take the federal government to court to protect our residents from this assault.”
New Jersey Governor Phil Murphy said the tax bill “is a clear and politically motivated punishment of blue states—like New Jersey and our neighbors—who already pay far more to the federal government than we receive.”
The new federal law disproportionally impacts the State of New York, which already sends $48 billion more each year to Washington than it receives in federal dollars—a far more extreme “balance of payments” shortfall than any other state. According to a recent report released by the State Department of Tax and Finance, the elimination of full SALT deductibility alone will cost New York an additional $14.3 billion, Cuomo said.
The elimination of full SALT deductibility also rolls back a basic foundation of federal tax law that has always allowed states to raise revenues that are not double taxed, Cuomo said.
Congressman Chris Collins, R-Clarence, sent an email to supporters after Cuomo’s announcement today. Collins criticized “King Cuomo” and welcomed campaign donations to fight the “liberal tyranny.”
“Today King Cuomo announced his plan to sue the federal government over the GOP Tax Plan,” Collins said in the email. “Instead of accepting reality, King Cuomo has decided to waste even more of our state tax dollars to steal your federal tax cuts.”